Gross Income: Exclusions
GROSS INCOME: EXCLUSIONS
Douglas, age 19, is a full-time student at State College and a candidate for a bachelor's
degree. During 2009, he received the following payments:
Corporations: Introductions and Operating Rules
CORPORATIONS: INTRODUCTION AND OPERATING RULES
Yellow Corporation had $300,000 operating income and $75,000 operating expenses
during the year. In addition, Yellow ha
Carlos owns five activities. He elects not to group them together as a single activity
under the "appropriate economic unit" standard. He participates for 100 hours in
Activity A, 14
Gross Income: Concepts and Inclusions
GROSS INCOME: CONCEPTS AND INCLUSIONS
In 2003, Barry purchased land for $50,000. In 2009, Barry received $10,000 from a
local cable television company in exchange for Barry a
Tax Practice and Ethics
TAX PRACTICE AND ETHICS
Which of the following statements properly characterizes letter rulings?
They are different from determination letters.
They can be relied upon only by the taxp
Property Transactions: Determination of Gain
PROPERTY TRANSACTIONS: DETERMINATION OF GAIN
OR LOSS, BASIS CONSIDERATIONS, AND NONTAXABLE EXCHANGES
Bradley borrowed $15,000 to purchase a machine. He later borrowed $3
The Federal Gift and Estate Taxes
THE FEDERAL GIFT AND ESTATE TAXES
At the time his death, Bradley owned stock as follows.
Date of Death
Stock in Valley Corporation
Stock in Stream Corp
An Introduction to Taxation
AN INTRODUCTION TO TAXATION
AND UNDERSTANDING THE FEDERAL TAX LAW
Henry inherits a personal residence from his aunt which he converts into a rental
property. This change should decrease
Income Taxation of Trusts and Estates
INCOME TAXATION OF TRUSTS AND ESTATES
The trustee of the Jefferson Trust is not required to distribute all of the current-year
annual accounting income of the trust to its sol
Taxation of International Transactions
TAXATION OF INTERNATIONAL TRANSACTIONS
Freddy, a U.S. resident, receives $60,000 of foreign-source passive category income on
which foreign taxes of $25,000 are withheld. His
Multistate Corporate Taxation
MULTISTATE CORPORATE TAXATION
Cobra Corporation is subject to a corporate income tax only in State X. The starting
point in computing X taxable income is Federal taxable income. Cobra'
Which of the following are organizations exempt under 501(c)(3)?
Boy Scouts of America.
League of Women Voters.
Only a. and b. are 501(c)(3) organizations.
During 2009, an S corporation incurs the following transactions.
Net income from operations
Interest income from savings account
Long-term capital gain from sale of securities
Abby contributed property with a $80,000 basis and fair market value of $120,000 to
the ABC Partnership in exchange for a 50% interest in partnership capital and profits.
During the first
Corporations: Distributions in Complete Liquidation
CORPORATIONS: DISTRIBUTIONS IN COMPLETE LIQUIDATION
AND AN OVERVIEW OF REORGANIZATIONS
Universe, the parent corporation, has a basis of $440,000 in the stock of S
Computing the Tax
COMPUTING THE TAX
In 2009, Tommy is a widower and maintains a household in which he and his
unmarried daughter, Pansy, live. Pansy must be Tommys dependent for Tommy to
claim head of household
Deductions and Losses: In General
DEDUCTIONS AND LOSSES: IN GENERAL
Rowan sells land to her adult son, Jerome, for its $50,000 appraised value. Her
adjusted basis for the land is $55,000. Rowans recognized loss is $
Deductions and Losses: Certain Business Expenses and Losses
DEDUCTIONS AND LOSSES:
CERTAIN BUSINESS EXPENSES AND LOSSES
The nonbusiness bad debt provisions are applicable to corporations but not individuals.
Depreciation, Cost Recovery, Amortization, and Depletion
DEPRECIATION, COST RECOVERY,
AMORTIZATION, AND DEPLETION
On June 14, 2009, Robert purchased a new automobile that cost $20,000. The car is
used 80% for busines
Deductions: Employee and Self-Employed-Related Expenses
DEDUCTIONS: EMPLOYEE AND SELF-EMPLOYED-RELATED EXPENSES
Employees must use Form 2106 to report their business-related expenses.
Beckett is the city sales m
Deductions and Losses: Certain Itemized Deductions
DEDUCTIONS AND LOSSES:
CERTAIN ITEMIZED DEDUCTIONS
Danny and Zoe are married and together have AGI of $40,000. They have two
dependents and file a joint return. Ea
Tax Credits and Payments
TAX CREDITS AND PAYMENTS
The work opportunity tax credit is only available for wages paid to employees in their
first year of employment.
A small employer incurs $2,000 for consulting
Property Transactions: Capital Gains and Losses
PROPERTY TRANSACTIONS: CAPITAL GAINS AND LOSSES, 1231, AND
Levi is a cash basis landlord. An earthquake destroyed one of his residential rental
Alternative Minimum Tax
ALTERNATIVE MINIMUM TAX
Donna, who is single and age 33, provides you with the following information from her
financial records for 2009.
Regular income tax liability
Accounting Periods and Methods
ACCOUNTING PERIODS AND METHODS
Under the all-events test, a taxpayer is required to match revenue from a sale with the
estimated future costs of servicing goods under a warranty.
Corporations: Organization and Capital Structure
CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE
Michael and Freddy form Willow Corporation. Michael transfers property (basis of
$175,000 and fair market value of $
Corporations: Distributions Not in Complete Liquidation
CORPORATIONS: DISTRIBUTIONS NOT IN COMPLETE LIQUIDATION
Assume taxable income is the starting point for computing E & P. During 2008,
Moscow Corporation made
Working with the Tax Law
WORKING WITH THE TAX LAW
Regulations are usually not issued immediately after a statute is enacted.
The IRS is not required to make a letter ruling public.
Which statement is true with re